The rapid integration of generative artificial intelligence (GenAI) into higher education presents accounting educators with the dual challenge of maintaining assessment integrity while leveraging AI to enhance student learning. This design-focused, reflective study examines the development and implementation of interactive oral assessment (IOA) in two accounting units: an undergraduate Ethics and Governance unit and a postgraduate Auditing and Ethics unit. Each unit included three assessments, but GenAI and IOA were incorporated into a single assessment in each unit through the generation of prompts and structured oral questioning. These assessments were designed to evaluate students’ ethical reasoning, professional judgement, and conceptual understanding. Drawing on the authors’ reflective teaching practice, the study illustrates how IOA promotes student’s active learning, supports the development of professional communication and critical thinking skills in problem solving contexts, and encourages the ethical and critical use of GenAI outputs in decision making rather than unreflective reliance on them. The findings offer practical insights into AI-informed assessment design and contribute to ongoing pedagogical debates on authentic assessment, professional judgement, and assessment integrity in accounting education.